| 4 Factors that Could Drive Freeport-McMoRan’s 2016 Performance | |
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An Investor’s Guide to Freeport-McMoRan’s 2016 Outlook (Continued from Prior Part) Freeport-McMoRan’s 2016 performance
In the previous part of this series, we saw that China’s December manufacturing PMI (purchasing managers’ index) missed analysts’ expectations. In a sense, the new year started on the same negative note that drove the global equity markets in 2015—China’s slowdown.
The copper industry bore the brunt of China’s slowdown in 2015. Freeport-McMoRan (FCX), Teck Resources (TCK), Glencore (GLNCY), and Turquoise Hill Resources (TRQ) lost substantial value last year.
In this part of the series, we’ll look at four key factors that could drive Freeport’s 2016 performance. Investors looking at a diversified exposure to the materials sector can also consider the iShares US Basic Materials ETF (IYM). Almost 12% of IYM’s holdings are invested into metals and mining companies.
Key drivers
The four key factors that could drive Freeport-McMoRan’s 2016 performance are shown in the graph above. These are:
- Movement in copper prices: Copper prices could depend on several variables that we’ll explore in the coming parts of this series.
- Agreement with the Indonesian government: Freeport needs to sign a fresh contract with the Indonesian government regarding its Grasberg mine.
- How Freeport addresses its surging leverage ratios: Freeport’s debt levels have reached alarming levels.
- The strategic path for energy assets: It’s been more than six months since Freeport first announced the IPO of its energy business. Later, the company announced other strategic paths that it is considering for the energy assets. However, we have not seen any concrete action on this front.
In the next part, we’ll explore the factors that could drive copper prices in 2016.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière de cuivre et d'or basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice de cuivre, d'or, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 2,1 milliards (1,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 , et son plus haut niveau récent le 19 septembre 2024 à 45,14 . Freeport McMoran possède 47 442 200 actions en circulation. |